A recent report compiled by Bord Bia on the organic market in Denmark has highlighted some key findings. In 2012, the total organic value market share was at 8.1%, the highest in the world, according to GfK ConsumerScan. Danes spend on average €162 per head a year on organic food, second only to Switzerland. There is a clear trend that households in Copenhagen buy more organic products than other parts of Denmark, with the organic share in the capital area standing at 13.8% in 2012. Those aged 30-39 years have the highest organic share in their grocery purchases, at 11.2%.
Danish consumers demand a broad range of organic products. Basic products such as oats, milk, eggs and oils had market shares of 20% and above respectively in 2012, with products like cold cuts and pork only holding market shares of less than 2%. Even though approximately 7% of the Danish land area is used for organic farming, with the Government aiming to reach 15% by 2020, the demand from consumers for such a broad range of organic products has resulted in growing Danish imports.
In retail terms, the soft discounter chain Netto (Dansk Supermarked Group) had the largest share of organic sales in 2012. Netto accounted for 16.8% of total organic sales in 2012, followed by Coop chains SuperBrugsen (12.8%) and Fakta (9.7%). With a share of 36% of total organic sales, discount stores continue to be the sales channel selling most organic products.
The organic market food sales from discount stores/supermarkets totalled €724 million, wholesalers and caterers in the public sector and restaurants reached €105 million, and alternative sales channels such as farm stores, subscription programmes and health food stores had sales of €72 million.
The Danish organic market is expected to continue to grow, fuelled by consumer demand, retail marketing support and political support. The market is very aware of the importance that the price difference between organic and conventional goods does not become too large. There is also clear organic private label segmentation in Denmark.
The Nordic Organic food fair in Malmo is becoming the reference point for organic companies in the Nordic region and will be held from October 26th-27th this year.
Source: BordBia – Danish Organic Food Market Showing Continued Growth
